Which kernel and root file system for Beagleboard xM?


I took over a BB where kernel 2.6.32 was installed. I went through the
2.6.32 Angstrom demo images which ran as expected.

In order to get some later versions - mainly because with 2.6.32 there
are some USB issues -
I took the ti-psp-omap 2.6.37 from here
and after recognizing that not just U-Boot's kernel command line needs
to be changed (9999 google hits)
but also /etc/inittab (2 google hits)
and maybe also /etc/securetty (1 google hit)
it comes up with a console and allows logging in.

I am still using the root file system from the Angstrom page:

Problem is now that when booting the 2.6.37 I do not get a network,
which is present and working with the 2.6.32 kernel.

My question is: Which Kernel (from what source) and which root file
system (also, please which source) is currently recommended for the
Beagleboard xM? BTW, my final focus is to speak with a properitary
measurement device that is connected over USB.

Thanks for your help!